First of all, as a profit-making organization, the income generated by training institutions in their business activities needs to be taxed according to law. These incomes may include tuition, teaching materials, accommodation and other expenses. According to tax laws and regulations, these incomes are usually classified as business tax or value-added tax.
Secondly, the determination of tax rate involves many factors. For business tax or value-added tax, the tax rate generally depends on local tax laws and regulations, which may be different in different regions. In addition, if the training institution also involves other types of income, such as investment income or property transfer income, then these incomes also need to be taxed according to the corresponding tax laws, and the tax rate will be different.
In addition, it should be noted that training institutions may also enjoy some preferential tax policies during the tax payment process. For example, for educational institutions that meet certain conditions, the government may give certain tax relief or preferential measures to encourage and support the development of education.
To sum up:
Training institutions need to pay taxes, and the determination of tax rate depends on their income type, business model and local tax laws and regulations. At the same time, training institutions may also enjoy some preferential tax policies during the tax payment process.
Legal basis:
Provisional Regulations of the People's Republic of China on Business Tax
Article 4 stipulates that taxpayers who provide taxable services, transfer intangible assets or sell real estate shall calculate the taxable amount according to the turnover and the prescribed tax rate. Calculation formula of tax payable: tax payable = turnover × tax rate.
Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax
Article 2 stipulates that value-added tax is a tax levied on the value-added realized by units and individuals in selling goods or providing processing, repair and replacement services and importing goods. The training services provided by training institutions belong to the scope of VAT collection.